Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.
Lillian Guevara-Castro brings more than 30 years of editing and journalism experience to the CardRates team. She has worked at The Atlanta Journal and Constitution, Gwinnett Daily News, Gainesville Sun, and The New York Times, where she covered demographics, consumer issues, and the business and financial sectors. Lillian has a degree in journalism and communications from Georgia State University and brings her fact-checking expertise to ensure Digital Brands content is accurate and engaging.
Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
We’ve always admired Discover for providing value to consumers. Its credit cards have minimal fees, offer good rewards, and are widely accepted nationwide. The Discover it® Cash Back credit card is Discover® Bank’s flagship card. It offers a quarterly rotating rewards plan with bonus cash back on select merchant categories when activated, subject to a purchase limit.
Of course, we recognize that many no-annual-fee cards compete head-on with the Discover it® Cash Back card, so this review also examines three other contenders. Any of the reviewed cards may be the perfect choice if you’re looking for a credit card that delivers excellent value.
It offers a 0% Intro APR (15 months) on new purchases as well as a 0% Intro APR (15 months) on balance transfers. Once the introductory period ends, the regular interest rate applies.
Discover’s 18.24% - 27.24% Variable APR is competitive when compared to similar cards with no annual fee.
Instead of a typical three-month signup bonus, the card offers a year of Cashback Match for new cardmembers.
Disclosure: When you apply through links on our site, we often earn referral fees from partners. For more information, see our ad disclosure and review policy.
Advertiser Disclosure
CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem your rewards for cash at any time.
Apply and you could get a decision in as little as 60 seconds. No annual fee.
Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. Activate by mobile app for free.
Get a 0% intro APR for 15 months on purchases. Then 18.24% to 27.24% Standard Variable Purchase APR applies, based on credit worthiness.
You can expect an instant decision, although it may take longer if the bank needs to further review any information you submitted. You can also request balance transfers when you apply for the card. Assuming Discover approves your application, you’ll e-sign the cardmember agreement to receive the card, which typically arrives within five business days.
You’ll receive an instant prequalification decision. If favorable, you can formally apply for the card by providing additional data, including your employment status, bank accounts, Social Security number, and email address.
Benefits & Drawbacks to Consider
The card provides good rewards and benefits without charging an annual fee. Consider the card’s pros and cons in the chart below:
FEATURES
DESCRIPTION
BENEFITS
Cash Back Rewards
Rotating quarterly rewards that require activation and are subject to a purchase limit.
Cashback Match
Discover matches all cash back earned at the end of the first year.
Introductory APRs
0% Intro APR (15 months) on purchases and 0% Intro APR (15 months) on balance transfers. Standard APR applies after.
Annual Fee
$0
Multiple Redemption Options
Redeem rewards for cash back, Amazon/PayPal purchases, gift cards, or eCertificates.
Security Alerts
Free Social Security number alerts
Freeze it®
Freeze your account instantly online or with the mobile app
FICO Credit Score
Free access to your FICO Credit Score
No Foreign Transaction Fee
No foreign transaction fees on purchases made abroad
Late Payment Forgiveness
No fee for the first late payment
Customer Service
100% US-based customer service available 24/7
Flexibility
Paying late won’t raise your APR or trigger a late fee for the first occurrence.
Online Services
You can manage your card with an easy-to-use mobile app and online services.
Security
$0 fraud liability guarantee
DRAWBACKS
Rotating Categories
You must enroll quarterly to earn 5% cash back and keep track of categories.
Reward Limit
5% cash back applies up to a quarterly maximum; 1% after that.
Foreign Acceptance
Foreign merchants do not accept Discover as widely as Visa or Mastercard.
Balance Transfer Fee
Charges a fee for balance transfers.
Cash Advance Fee
Has a fee for cash advances along with a higher APR for cash advance balances.
Late Payment Penalty
After the first late payment, a fee applies.
Credit Requirement
The card requires good to excellent credit for approval.
Limited Bonus Categories
Rotating categories may not align with your spending habits every quarter.
Complexity
Managing rotating categories and enrollment can be complex for some.
We consider the card’s drawbacks fairly minor compared to its benefits. On the other hand, it does not provide travel card perks or purchase protection. You may want to consider one of the card’s top competitors if you require specific benefits not available from the Discover it® Cash Back.
Other No-Annual-Fee Cards Worth a Look
These three cards provide excellent rewards and benefits without an annual fee. They vigorously compete with the Discover it® Cash Back card. These cards would be outstanding additions to your wallet, especially after you collect your first-year Cashback Match from Discover.
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.74% - 28.49%.
No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
The Chase Freedom Unlimited® is a popular credit card thanks to its excellent introductory promotions and multiple cash back rewards tiers on common spending categories. It’s our top-rated cash back card. The card offers a 0% APR on purchases and balance transfers, travel card benefits, purchase protection, and extended warranty coverage. The latter three of which aren’t offered by Discover.
Bank of America® Customized Cash Rewards credit card
4.9/5.0
About this rating
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
Bank of America® Customized Cash Rewards credit card
4.9/5.0
About this rating
Our in-house experts rate credit card offers based on:
Reward rates and redemptions
Regular and promotional APRs
Signup bonuses
Annual and other fees
Travel and other credits
General approval rates
Issuer reputation
We also consider other cardholder needs and data points specific to the category. We then compare it to similar card offers and evaluate the terms before assigning a numerical value, in which 5.0 represents the best. Ratings are updated as issuer changes occur, and issuers have no influence on our ratings.
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishings purchases.
If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
No annual fee and cash rewards don’t expire as long as your account remains open.
0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
Contactless Cards - The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%)
18.24% - 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good
Additional Disclosure: Bank of America is a CardRates advertiser.
The Bank of America® Customized Cash Rewards credit card caters to consumers who want to choose their favorite bonus category, whereas the Discover card sets the categories each quarter. You can select your bonus category from a list that includes travel, drug stores, online shopping, gas, dining, and home furnishings. It may be the best credit card for Bank of America customers seeking a welcome bonus and 0% APR for purchases and balance transfers.
Citi Custom Cash® Card
This card is currently not available.
Best Overall Rating
★★★★★
N/A
OVERALL RATING
N/A
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
N/A
N/A
N/A
Additional Disclosure: The information related to the Custom Cash® Card has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.
The Citi Custom Cash® Card also lets you choose your cash back bonus categories. It features a $0 annual fee, signup bonus, and introductory 0% APR for purchases and balance transfers, after which the standard rate applies. You can configure the card’s app to alert you to low balance levels, payment due dates, and attempts to spend beyond your credit limit. The card accepts applicants with fair credit.
Real Cardholder Reviews
The Discover it® Cash Back card has many internet fans. Jesse_berger writes:
“I’m a big fan of the Discover card. I see it is a long-term, forever card as there will always be a quarter that the card will be used, whereas there are cards I’ve gotten within the last two years that I was super excited for but are now rarely used.”
“My first year ended on March 11th. I used it as my sole card for one year and ended up with a little over $1,900 in cash back after the match. Moving it to my checking was easy. I leave a few dollars of cash back in the app to take advantage of Amazon deals.”
RandSandpoints out the card’s deficiencies for international purchases:
“A significant number of online merchants outside the US do not accept Discover directly… Foreign card processors have little incentive to support Discover when it is most likely for a tourist to have a Visa or Mastercard by default.”
Aside from the foreign purchase issue, we encountered relatively few complaints about the card among members of the online forum community.
FAQs: How Do the Card’s Rewards Work?
Discover it® Cash Back offers three ways to earn rewards: Bonus quarterly cash back rotating categories that are subject to a purchase limit when activated, a flat cash rate on all other eligible purchases, and the first-year Cashback Match.
Earning Rewards on Purchases
You earn 5% cash back on everyday purchases at the various places you shop each quarter, up to the quarterly maximum cap. You must enroll each quarter to receive the 5% cash back in your selected categories. All other purchases earn unlimited 1% cash back.
Examples of rotating merchant categories include restaurants, drug stores, gas stations, and Target. You can activate your bonus rewards online or through the Discover mobile app.
Cashback Match
At the end of the first year, you’ll receive a Cashback Match of all the cash back posted from the day your new account opens through your first 12 consecutive billing periods or 365 days, whichever is longer.
You will receive your Cashback Match within two billing cycles after the match period ends. The match is unlimited, which means it may significantly exceed the usual signup bonus.
Discover will not match the following:
Rewards that it processes after your match period ends
Statement credits
Rewards transfers from a Discover checking account or other bank sources
Rewards for accounts that you or Discover closes
This promotional offer may not be available in the future and is exclusively for new cardmembers — no purchase minimums apply.
Redeeming Rewards
You can redeem your cash back rewards in any amount at any time. Rewards never expire. You can receive your rewards in several ways:
Statement credits
Paper checks
Electronic deposits to an eligible savings or checking account
Charitable donations to select organizations
Via Pay with Rewards at Amazon.com or through PayPal
Gift cards at popular brands, starting at $5
Discover will credit your account or send you a check with your rewards balance if the account closes or if you have not used it within 18 months.
What is the Card’s Credit Limit?
The starting credit limit on the Discover it® Cash Back card is $500. You cannot request a specific credit line. Discover bases your credit line on its review of the information you provide in the card application and your consumer reports. The review may also include other details Discover collects concerning your creditworthiness.
Discover does not consider any balance transfers you request with an application to be a request for a particular credit line.
The issuer doesn’t appear to grant credit limit increases automatically. You can request an increase online, via the mobile app, or by calling the number on the back of your credit card. You must disclose your current monthly housing payment and annual income. Requests don’t trigger a hard credit check and usually receive an immediate decision.
An alternative way to increase your credit line is to apply for another Discover credit card. Discover® Bank allows you to own two of its cards at any one time. The credit line on the second card will improve your credit utilization ratio — unless you use the new card to finance a spending spree.
Generally, you should only attempt to increase your credit if your budget can accommodate potentially higher debt.
Is this Card Good for Beginners?
Because of its credit score requirement, the Discover it® Cash Back is not necessarily Discover’s best credit card for beginners, especially if you are an undergraduate student.
Instead, you may want to consider these three Discover starter cards: the Discover it® Student Cash Back, Discover it® Student Chrome, and Discover it® Secured Credit Card.
Discover it® Student Cash Back
Discover it® Student Chrome
Discover it® Secured Credit Card
Annual Fee
None
None
None
Cash Back Rewards
5% cash back in rotating categories you activate each quarter, up to the quarterly maximum; 1% on all other purchases
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter; 1% on all other purchases
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter; 1% on all other purchases
Cashback Match
Matches all cash back at the end of the first year for new members
Matches all cash back at the end of the first year for new members
Matches all cash back at the end of the first year for new members
Intro APR Offer
0% Intro APR (6 months) on purchases, after which the regular APR applies
0% Intro APR (6 months) on purchases, after which the regular APR applies
10.99% Intro APR (6 months) on balance transfers, after which the regular APR applies
Regular APR
17.24% - 26.24% Variable APR
17.24% - 26.24% Variable APR
27.24% Variable APR
Credit Building
Designed to help students build credit
Designed to help students build credit
Designed for those with no/limited credit to help build credit
Security Deposit
None
None
$200
Eligibility
Student credit card for undergraduates with fair credit or no credit history
Student credit card for undergraduates with fair credit or no credit history
Individuals looking to build or rebuild credit
Discover designed these three cards for individuals with no, limited, or subprime credit. Each provides access to free FICO credit score reports without charging foreign transaction fees or a penalty for the first overdue payment.
Is the Discover it® Cash Back Better than the Discover it® Chrome?
The Discover it® Cash Back and Discover it® Chrome are identical aside from their cash back reward structures.
The Discover it® Cash Back card pays 5% up to a specified limit on quarterly rotating merchant categories that you must activate. The Discover it® Chrome lets you earn 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter without requiring activation. Both cards pay an unlimited 1% cash back on all other eligible purchases.
Otherwise, the cards provide identical APRs, fees, and Cashback Match. The Discover it® Chrome is an excellent companion to the Discover it® Cash Back credit card for your restaurant and gas station spending.
Are Discover Cards Good?
We consider Discover cards to be an excellent choice for many consumers due to their competitive cash back rewards, lack of annual fees, and attentive customer support channels. All Discover cards, including the student and secured versions, offer cash back on eligible purchases. Some cards feature tiered or rotating bonus categories for specific purchases.
The Cashback Match doubles the rewards new cardmembers earn in the first year. Additionally, Discover cards provide US-based customer service and free access to FICO credit scores.
Discover doesn’t charge a fee for the first past-due payment or for foreign transactions — a must for international travelers.
However, Discover cards may not be the best option for everyone. For example, foreign merchants may not accept the Discover brand as readily as Visa or Mastercard. Also, the rotating bonus categories require quarterly enrollment, which some folks consider a hassle. You’ll also find much more robust travel benefits on cards from Chase or American Express.
Overall, your lifestyle will determine whether a Discover card is a good fit. As with any financial product, it makes sense to compare Discover card costs and benefits against the competition.
This Card May Be For You If You…
Want to earn generous cash back rewards and don’t mind the quarterly activation requirement.
Don’t want to pay an annual fee
Appreciate customer-friendly policies, such as waiving your first late fee.
Don’t plan to use this card for travel expenses. Other cards come with better travel benefits.
Given these positives, the Discover it® Cash Back card perennially earns high overall ratings. It’s a solid option if you don’t mind activating categories each quarter to maximize your earnings. And, Discover is friendly on fees, which we always appreciate.
About the Author
Eric Bank
Finance Expert
Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.
Share the Knowledge!
Our finance experts work hard to show you the best credit cards. Want to show your appreciation? Share this page!
